US Steel’s largest segment<br /> U.S. Steel’s flat rolled segment generates the most revenue for the company, but this segment has suffered from low profitability, and thus affected the overall profits of U.S. Steel. The segment has shown signs of improvements over the past few quarters.<br /> Flat rolled segment is recovering<br /> As the above chart highlights, the flat rolled segment frequently experienced losses until the middle of 2013. This segment accounts for around two thirds of U.S. Steel’s revenue. Since 2013, when U.S. Steel embarked on the Carnegie Way program, this segment has improved its profitability. This program is a transformation strategy aimed at restoring the long-term profitability of U.S. Steel.<br /> Flat rolled segment’s recent performance has been below expectations<br /> The performance of U.S Steel’s flat rolled segment in the past two quarters has not been good, but that is mainly because of the adverse weather earlier this year that damaged its facilities. U.S. Steel incurred heavy costs to restore its plants’ operations. The shutdown at plants also impacted U.S. Steel’s profitability. Other steel makers like ArcelorMittal (MT) were also affected. Nucor (NUE) actually benefited from the situation, as it was able to garner some customers from other steel makers whose production facilities were impacted.<br /> The share price of U.S. Steel continued to surge higher despite a fall in its profits. The drop in profitability was primarily due to weather-related costs, which are not expected to occur again in the future. The next article in the the series will review the outlook for this key segment.<br /> <p> Investors can also access the metals industry through AK Steel (AKS) and the SPDR S&amp;P Metals and Mining ETF (XME). </p> <p style="text-align:center;"> <img src="/upfiles/news/image/20140925/20140925174842_9666.jpg" alt="" /> </p> <br />